Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Opinion / Online-views/  Quick Edit | A tough year ahead
BackBack

Quick Edit | A tough year ahead

Quick Edit | A tough year ahead

Premium

The consensus can often be misleading.

Investors in emerging markets have once again been reminded of this harsh truth. There was almost unanimity in the financial markets that the monetary blast in the US—aka QE2—would send waves of money into markets such as India.

In fact, capital flows to emerging markets (EMs) have slowed, as the International Monetary Fund noted in its latest economic report released on Wednesday.

EMs have become less attractive in recent months, and India particularly so. The year ahead promises to be tough. Consumer and investment spending is up against higher interest rates. Government spending could be under pressure given the need to cut the fiscal deficit.

The new survey of fund managers released on Wednesday by Morgan Stanley shows that only a quarter believe India will outperform the EMs in 2011. Lazy bullishness is always a risk.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 26 Jan 2011, 11:29 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App